First Steps After Losing a Spouse: Financial Checklist

The first week after losing a spouse is overwhelming. Focus only on essential tasks and accept help from others.

• Order death certificates - Request 10-15 certified copies from the funeral home or vital records office. Each institution will need an original.
• Notify Social Security - Call 1-800-772-1213 or visit your local office. This stops benefit payments and starts survivor benefit process.
• Secure important documents - Locate the will, trust documents, insurance policies, and financial account statements.
• Contact employer - If your spouse was employed, notify HR about death benefits, final paycheck, and COBRA health insurance options.
• Avoid immediate financial decisions - Don't sell the house, change investments, or make major purchases during acute grief.

You may be entitled to various survivor benefits. Understanding these can provide crucial financial support.

• Social Security survivor benefits - Widows/widowers can receive 100% of deceased spouse's benefit at full retirement age, or reduced benefits as early as age 60.
• Pension survivor benefits - Many pensions have survivor options. Contact the plan administrator immediately.
• Life insurance - File claims with all life insurance companies. Check for policies through employers, associations, and credit cards.
• Veterans benefits - If your spouse was a veteran, contact the VA about survivor benefits and burial assistance.
• 401(k) and IRA beneficiary - As beneficiary, you have options: take distributions, roll over to your own IRA, or disclaim.

Properly handling joint and individual accounts protects your access to funds and prevents fraud.

• Joint bank accounts - These typically pass directly to the surviving spouse. Update to remove deceased spouse's name.
• Individual accounts - Access may require probate. Contact the bank with death certificate and letters testamentary.
• Credit cards - Cancel cards in spouse's name only. Remove spouse from joint cards but keep accounts open for credit history.
• Investments - Contact each brokerage. Jointly held accounts transfer; individual accounts go through estate.
• Automatic payments - Review all automatic debits and update payment sources as needed.

Health insurance requires immediate attention - you may have limited time to make coverage decisions.

• Employer health coverage - COBRA allows 36 months of continued coverage after spouse's death, but premiums are high.
• Medicare - If you're 65+, ensure your own Medicare coverage is complete. You may qualify for Special Enrollment Period.
• Health Marketplace - Losing spousal coverage triggers a 60-day Special Enrollment Period for ACA plans.
• Auto/home insurance - Update policies to reflect single owner. May affect premium rates.
• Long-term care - Review your own long-term care insurance needs now that you're managing alone.

Tax filing changes after a spouse dies. Understanding your options can minimize your tax burden.

• Final joint return - You can file jointly for the year your spouse passed, often resulting in lower taxes.
• Qualifying widow(er) status - For two years after death, you may use favorable joint tax rates if you have a dependent child.
• Stepped-up basis - Inherited assets receive a stepped-up cost basis, potentially eliminating capital gains.
• Estate taxes - Federal estate tax exemption is $13.61M (2024). Most estates won't owe, but consult an advisor.
• Retirement account distributions - Inherited IRAs have specific distribution rules. Spousal beneficiaries have the most flexibility.

Once immediate concerns are addressed, focus on securing your own financial future.

• Review your will and estate plan - Update beneficiaries, powers of attorney, and healthcare directives.
• Assess income needs - Calculate your new monthly income from all sources and compare to expenses.
• Consider downsizing - The family home may be too large or expensive. But don't rush this decision.
• Guard against scammers - Widows are frequently targeted. Never give money or information to unsolicited callers.
• Diversify and protect assets - Consider moving some assets to precious metals in a Gold IRA for protection and diversification.